This is an agreement between Meadowlark Capital LLC (formerly Blaine’s Trailer Court) and the City of Billings for the City to provide sanitary sewer service to the Court.  A public hearing is required prior to the City providing sanitary sewer service to an area outside of the City limits as per City Code (BMCC) Section 26-206.  City Council will conduct a public hearing, consider granting a waiver to service and annexation requirements of Sections 22-203 and 22-204 (as amended) and consider approving the Meadowlark Capital LLC sewer service agreement.

The City Council may:
  
Grant a waiver to BMCC sections 26-203 and 204 and approve this agreement for the City to provide Sanitary Sewer Service to the Meadowlark Court without annexation; or
 
Not approve the waiver or this agreement.  If not approved the City would not be able to provide sanitary service to the Meadowlark Court.
 

Meadowlark will pay all fees to the City including a private contract fee, the City’s System Development fee (SDF) at the time of connection and a monthly fee.  The SDF is set by Council and will also include the franchise fee.  Currently this franchise fee is 4% and is subject to change.  The monthly fee includes the “Minimum Monthly Wastewater Charge” for customers outside the City plus the franchise fee plus a surcharge for areas outside of the City.  The items included in the total monthly fee will be the current fees in effect for that month and are subject to change. The surcharge fee is currently at 6%.  Officials from Meadowlark have said that they would like to ask Council to waive the surcharge fee.  As a note, Meadowlark has been providing potable water to the City’s maintenance shop at the landfill free of charge for many years and will continue providing this service.

 

In late 2014, representatives from Meadowlark Capital LLC met with representatives from the City Departments that would be affected by annexation of this property.  The Court contains over 200 manufactured housing units.  Receiving service from the City will mean the Court will not construct a new sewer lagoon.  This lagoon would be situated near the Yellowstone River and would be upstream of the City’s water intakes.  In the event of a failure of the lagoon, it could adversely affect the City's water intakes.  As a note, it is cost prohibitive for Meadowlark to upgrade the Court’s streets and other infrastructure to meet the City’s requirements for annexation. At the end of the meeting with the department representatives the consensus was to not annex this property.  The Public Works Department said it would ask Council permission to serve this property without annexation.  

Public Works presented this recommendation to Council at the January 5, 2015 work session.   At that meeting the Public Works Department asked Council for direction in serving the Meadowlark property and two other potential water and sanitary sewer customers outside the City limits.  The three properties were identified as:
 

• Meadowlark Properties formerly Blaine’s Trailer Court
• ExxonMobil Refinery
• Proposed Trailhead Commerce Park in Lockwood

 
Council’s direction at that meeting to staff was to bring back an agreement for the properties including the Meadowlark property to Council for action. 

The Public Works Board discussed the City serving the Meadowlark property and the two other potential water and sanitary sewer customers outside the City limits at their April 16, 2015 meeting. The consensus of the Board was to pursue serving these three properties outside of the City limits without requiring them to annex to the City.

City staff met with Meadowlark a little over a year ago regarding an agreement for sanitary service.  Since that time officials from Meadowlark were considering the agreement and they contacted staff several weeks ago indicating they were ready to move forward with the agreement. 
  
This project will be a private contract.  A private contract is used when a property owner develops a piece of land, makes all of the required improvements and dedicates those improvements to the City.  In this case, the Meadowlark property is developed, but they will be constructing a new sanitary sewer.  Note that the existing collection system in the Court will continue to be maintained by Meadowlark and only the newly constructed sewer in Jellison Road will be transferred to the City after construction/acceptance by the City.

BMCC Section 26-203 requires that the property at the time of application for sanitary sewer service be:

• Contiguous to the boundary of the service area as same exists;
• Entirely within the City's Red Area on the Limits of Annexation Map;
• Entirely within the City's facilities planning area.

This section also requires that the applicant complete annexation requirements as set forth in BMCC Section 26-204.    Prior to considering this item, the Council took action on the second and final reading of an ordinance amending BMCC Article 26-200, Water and Wastewater Service Area.  This ordinance allows a waiver from the requirements of BMCC sections 26-203 and 26-204.  This agenda item will require Council approving that waiver and also approving this agreement.

The public hearing was advertised in the Billings Times on June 2 and June 9, 2016.
 

The stakeholders are Meadowlark Capital LLC and the City of Billings.